Economics & Finance / Macroeconomics / Economic Growth & GDP

Wisdom Across Borders-delves into the core impacts of international technology diffusion on global

International Technology Diffusion

Wolfgang Keller

International Technology Diffusion. This research report delves into the core impacts of international technology diffusion on global economic growth and income disparities between countries. Author Wolfgang Keller points out that because resources for technological innovation are highly concentrated in a few developed countries, foreign R&D activities have a more significant impact on productivity improvements in most countries than domestic R&D. The article focuses on analyzing several major channels of technology diffusion, particularly how international trade, foreign direct investment, and transnational communications facilitate the flow of knowledge. Furthermore, the literature reveals that technology diffusion has a significant geographical locality, meaning that diffusion intensity decreases with increasing spatial distance, but this geographical limitation is gradually decreasing with globalization. Finally, the author emphasizes that a country's absorptive capacity (such as human capital levels and domestic R&D investment) is a key determinant of its ability to successfully acquire and transform advanced foreign technologies.